Did Bautista’s bank tell AMLC of transactions?’

By JP LOPEZ

August 14, 2017

THE Senate will look into the possible culpability of a bank for its failure to report to the Anti-Money Laundering Council “suspicious” bank transactions of Commission on Elections Chairman Andres Bautista, which were part of the exposé of his estranged wife, Patricia, Sen. Francis Escudero said yesterday.

Escudero, chairman of the Senate committee on banks, said the Luzon Development Bank which is based in the Calabarzon is mandated to report Bautista’s “suspicious” transactions with the bank.

Escudero said the bank has to answer -- if Patricia’s allegations were true -- why Bautista has more than 30 accounts under his name in LDB and the deposits are less than P500,000.

He also said banks have the “KYC” or “know-your-client” rule under which a bank has the right to reject a deposit if it is not convinced that the money came from a legal source. He said the bank should have asked Bautista the source of his money.

Escudero said his panel might call a separate hearing into the matter to come out with possible legislation to amend the charter of the Bangko Sentral ng Pilipinas and the Anti-Money Laundering Act.

He said some smaller or rural banks appear to be in cahoots with some government officials involved in corruption.

He noted that Bautista, in media interviews, has admitted he is acquainted with the owner of LDB.

He also said banks should be alert especially when its depositors are politicians, because of the possibility that their money came from corrupt activities.

“It would be good to ask these banks, one, are they reporting deposits, even though less than P500,000, to the AMLA even if these are suspiciously done everyday?” Escudero said.

He said banks should ask their clients where they got the money by presenting documents and papers that would attest to the legality of the funds to be deposited.

“I want to know whether there are politicians or government officials who are using smaller banks to hide their wealth so they wouldn’t get noticed or at least their illegal activities are below the radar,” Escudero said.

“If this is true, then we should take a look into the rural banking industry so we can amend the law if it is necessary,” he said

Patricia claimed the Comelec chief has 35 passbooks with LDB with a total balance of P329,220,962; a foreign currency account with Rizal Commercial Banking Corp. with $12,778.30, or P640,959.53; an RCBC peso account with P257,931.60; and an HSBC account with HK$948,358.97 or P6.10-million.

She also alleged Bautista owns real estate properties in Taguig City and in California.

Majority Leader Vicente Sotto III has filed a resolution asking the Senate Blue Ribbon committee, chaired by Sen. Richard Gordon, to look into Patricia’s allegations. Gordon has not set a date for the hearing.

Justice Secretary Vitaliano Aguirre II said he met with Cesar Dulay, head of the Bureau of Internal Revenue, on Bautista’s alleged P1 billion in undeclared assets, and discussed with him documents being looked into by the NBI.

Aguirre also said the NBI’s Anti-Fraud Division has coordinated with the AMLC to be able to examine the 35 bank accounts; with the Presidential Commission on Good Government, which Bautista headed from 2010 to 2015, to determine if he committed anomalies in the agency; and with the Ombudsman, to get a copy of Bautista’s statement of assets, liabilities and net worth (SALN).

Based on his SALN, Bautista had a net worth of P176.3 million for 2016, and is the richest of the heads of five constitutional bodies -- Comelec, Office of the Ombudsman, Commission on Audit, Civil Service Commission, and the Commission on Human Rights.

Bautista’s wife met with President Duterte last July 26 before she submitted an affidavit to the NBI detailing the alleged undeclared assets. She also gave details about bank passbooks and other documents she said she discovered in the name of her husband and some of his
relatives. She said these were not included in her husband’s SALN for 2016. – With Ashzel Hachero

Column of the Day

‘The Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. § 78dd-1, et seq.) is a United States federal law known primarily for its main provision: Against bribery of foreign countries’ food management officials.’

About Malaya

Malaya Business Insight's weekday sections treat readers to timely articles on shipping, banking, information and technology, automotive and motoring, real estate and property development, travel and tourism and people and sectoral events. Special issues and supplements are designed to enrich current information and data files of readers with pre-selected topics of national and local significance.